A small venture capital firm faced tough questions from conservative judges Wednesday as it defended a grant program for Black women-owned businesses in a lawsuit that has become emblematic of a growing legal backlash against corporate diversity programs.
The Fearless Fund, which provides early-stage funding for businesses owned by women of color, is asking a three-judge panel in a U.S. federal court of appeals to lift an injunction against one of its programs, the Strivers Grant Contest, which provides $20,000 to businesses that are majority owned by Black women. The conservative group American Alliance for Equal Rights, filed a lawsuit last fall arguing that the program discriminates against people of other races.
The hearing in Miami on Wednesday is intended to decide whether the grant will remain suspended for the duration of the lawsuit. Questions by the conservative-leaning panel — consisting of two judges appointed by former President Donald Trump and one appointed by President Barack Obama — suggest the Fearless Fund will have an uphill battle.
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